An “Individual Voluntary Arrangement (IVA)” is a legally-binding agreement made between an individual and their creditors. This agreement allows the individual to repay their debts over a set period, typically five to six years. Designed as an alternative to bankruptcy, an IVA is a solution for individuals who find themselves unable to repay their entire debt amount. Once the IVA period concludes, any remaining debts are usually written off.
What is a DBS Check?
A Disclosure and Barring Service (DBS) check delves into an individual’s criminal history. Previously known as a CRB check, this process is essential for employers and organizations to ascertain the suitability of an individual for specific roles. This is especially crucial for positions that involve interaction with vulnerable groups, such as children or the elderly.
Will an IVA show up on a DBS check? The adverse credit check will also show up any individual voluntary arrangements (IVA), county court judgements (CCJ), or bankruptcy. Not all companies will ask for an adverse credit check, as they are not compulsory, but many do.
Can I join the police with an IVA? Applicants with a current Independent Voluntary Agreement (IVA) will not be considered. However, if it has been discharged, and you have a certificate of satisfaction, you may be considered.
Can I sell my car in an IVA? An IVA protects you from having to sell your car. You will also be allowed to set aside sufficient funds each month from your income to enable you to maintain the car and keep it in a roadworthy condition. Other running costs such as road tax and MOT costs are also accountable.
Do you lose your house with an IVA? How will an IVA affect my home? Under an IVA it’s unlikely you’ll have to sell your home. However, depending on the amount of equity in your home, you may have to re-mortgage six months before the end of your IVA to release equity. This will then be paid into your IVA.
Credit Score Impact:
Entering into an IVA can have a detrimental effect on one’s credit score. This financial arrangement remains on the individual’s credit file for six years from its commencement date. Consequently, securing credit during this period can pose significant challenges.
While an IVA offers protection for primary assets, such as one’s home, it might necessitate the release of equity from these assets to satisfy creditors. Furthermore, individuals might be required to sell luxury items to contribute funds towards the IVA.
The DBS check process is initiated either by the individual in question or their prospective employer. This involves completing an application form and submitting the necessary identification documents.
Types of DBS Checks:
DBS checks come in various levels:
- Basic: Reveals unspent convictions.
- Standard: Discloses both spent and unspent convictions, cautions, reprimands, and final warnings.
- Enhanced: Covers everything in the Standard check and any additional information held by local police deemed relevant to the role.
DBS check outcomes play a pivotal role in recruitment decisions. Employers leverage these results to ensure the safety and integrity of their organization and its clientele.
Certain job roles, especially those that involve vulnerable demographics, mandate a DBS check by law. Hiring someone with a negative DBS outcome for such positions can lead to legal consequences.
How long does an IVA last?
An IVA typically spans five to six years. However, its duration can vary based on individual financial situations and the terms agreed upon with creditors.
Can I travel abroad with an IVA?
There are no legal constraints on traveling abroad during an IVA. However, it’s imperative to maintain regular IVA payments throughout the travel duration.
How often do I need a new DBS check?
DBS checks don’t have a formal expiration date. The frequency of new checks is at the discretion of the employer or organization, depending on the nature of the role and its associated risks.